A bill by Louisiana’s Rep. Roger Wilder to enlarge the sportsbook tax from 15% to 51% has been shelved at the legislator’s request.
If approved, the proposal would have raised the wagering fee to match New York’s record US charge rate. The goal is to grow state revenue amid a budget deficit.
Key Provisions of the Project
Mr Wilder’s initiative successfully passed the country’s House Ways and Means Committee on November 13th before being withdrawn.
The key provisions of the document are:
- a proposal to uplift the contribution rate to 51%;
- a ban on deducting promo gaming credits from bookmakers' taxable income.
Analysts predict an increased fee would enlarge Louisiana’s revenues by $ 205.3 million in the upcoming fiscal year. At the current rate, the jurisdiction receives $ 52.2 million.
The bill was withdrawn to add additional clauses and finalise several regulatory aspects. The likelihood that the updated document will be submitted for the next hearing, which will take place on November 25th, is minimal.
According to the initiative’s supporters, the project should become part of a more comprehensive tax reform promoted by the Governor's efforts. Opening the latest session, Jeff Landry noted that the system is overburdened and inefficient. It is very outdated and is holding the state back. The region currently faces a $ 700 million budget deficit.
Opinions of the Bill’s Opponents
Industry experts and stakeholders have expressed concerns about the potential impact of such a radical move. Critics say the measure will undermine the wagering segment’s competitiveness and force consumers to deal with black-market providers.
The iDEA’s Co-Founder called on Louisiana’s lawmakers to abandon the tax-increase proposal. According to Jeff Ifrah's words, a staggering fee rate is a drastic and counterproductive policy decision. Not only will it enlarge operators' expenditures, but it will also negatively impact players. Gamblers will bear the brunt of the costs due to unfavourable coefficients and advertising restrictions.
Fanatics’s VP of Government Affairs echoed the previous speaker. In Brandt Iden's opinion, it is very odd that Louisiana’s Republicans are advocating for a tax surge of over 300%. The expert does not believe it makes sense.
Louisiana has become one of the latest states to consider raising commissions on the betting industry.
The jurisdiction followed similar initiatives in the following lands:
- Illinois — an uplift to 40%;
- Ohio — a jump to 20%.
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